Consumer Affairs Victoria rolls out measures to combat underquoting

Revisions have been made to Victoria’s Statement of Information forms, in a bid by Consumer Affairs Victoria (CAV) to reduce cases of underquoting.

Underquoting is a sales tactic whereby a property is listed for less than the real-world value to attract greater interest from potential buyers.

Statement of Information forms, in their current form, were introduced in 2017.

The most recent revisions have been introduced to ensure more transparency for potential buyers.

The document requires agents to provide the details of three comparable properties, the median price of the suburb where the sale is taking place, and an estimated selling price calculated through a regulated set of criteria.

It must be displayed at all open for inspections, included with any online advertising, given to prospective buyers within two business days of a request, and updated if there is any change in the indicative selling price.

When selecting the most comparable properties, the agent must take into account the standard and condition of the properties, the location of the properties, the date of sale of the properties.

The estimated price may be represented as a single figure, or a range of up to 10%.

It must reflect the comparable properties, be 'reasonable', and must not be lower than the seller's asking price.

The revisions came into effect on the 16th September, 2019.

They only apply to sales authorities signed on, or after, 1 May 2017.